The main legal point established in the judgment is that the interest under Section 18 (3) (A) of the Karnataka Agricultural Income Tax Act is a compensatory payment for delayed remittance or payment of tax liability, and it is reasonable to infer that the interest is to be levied with reference to the tax liability as determined by the Assessing Officer.

( 1 ) I have heard the learned Counsel for the petitioners and the learned HCGP appearing for the respondents.

( 2 ) STATEMENT of objections has also been filed on behalf of the respondents.

( 3 ) IN these petitions a common question having been raised on behalf of the petitioners, these petitioners are disposed of by this common order.

( 4 ) PETITIONERS are assesses under the provisions of the Karnataka agricultural Income Tax Act, 1957.

( 5 ) PETITIONER in W. P. No. 41114/03 filed his returns of agricultural income of for the assessment year 1996-1997 on 18. 3. 1998. This return the petitioner was required to file by 31. 7. 1996. On such return the Assessing Officer completed the assessment as per his order dated 16. 3. 1999 and the Assessing Officer on noticing that there was a delay in filing the return of income, proposed levy of interest under Section 18 (3) (A) of the Act. After according an opportunity to the assessee, by his order dated 31. 1. 2002 levied a sum of Rs. 81,764/- as interest payable by the assessee due to the delayed filing of his agricultural income and due to the delayed payment of tax.

( 6 ) LIKEWISE, the petitioner in W. P. No. 34039/2003 in respect of the assessment year 1995-96, a return for which was due by 31. 7. 1995 filed only by 28. 3. 1996. The assessment order was passed on 2. 3. 01. In this case also the assessing officer having issued notice to the assessee regarding the proposal for levy of interest under Section 18 (3) (A) of the Act for the delayed filing of return and the delayed payment of tax, as per his order dated 30. 1. 2002, a copy of which is produced at Annexure-D, called upon the assessee to pay a sum of Rs. 45,246/- as interest under Section 18 (3) (A) of the Act.

( 7 ) IT is the levy of such interest under the provisions of Section 18 (3) (A) of the Act that has been challenged in these writ petitions. Section 18 (3) (A) of the Act, reads as under:- section 18 (3) (a): where a return under sub-section (1) or sub-section (2) or sub-section (3) for any assessment year is furnished after the date specified under sub-section (1) or is not furnished then in cases where the Agricultural Income-Tax Officer has not extended the date of furnishing the return under Section 61, the assessee shall be liable to pay in addition to the tax payable, interest at the rate of twenty four per cent per annum reckoned from the day immediately following the date specified in sub-section (1) to the date of the furnishing the return or where no return has been furnished the date of completion of the assessment, on the amount of the tax payable on the total agricultural income as determined on regular assessment as reduced by the tax paid, if any.

( 8 ) THE submission of Sri. S. Parthasarathi, learned Counsel for the petitioners is that the levy of interest under these provisions is not reasonable that the petitioners in fact at the time of filing of the return had paid what ever taxes were due as per the returns that they were filing and petitioners, have become liable to pay certain further amounts only for the reason that the Assessing Officer has not accepted the returns which has been filed, but is determining the amount over and above what had been indicated by the petitioners as the tax liability. Learned Counsel submits that the final determination being by the Assessing Authority and being not known to the petitioners it is not reasonable to levy interest on the premises that the returns are filed belatedly or the amount of tax as determined under the assessment order ought to have been paid, even while filing the return of income. It is also the submission of the learned Counsel that the amount of tax as determined by the assessing officer has been paid within the permitted time and as such there is no occasion for levy of any other interest under the provisions of Section 18 (3) (a) of the Act.

( 9 ) LEARNED Counsel for the petitioners submits that though petitioners urged before the Asses

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